JSW Infra Acquiring Navkar Corp, To Pick Up 70% Stake From Promoters, Make Logistics Foray | ET Now

JSW Infra will be in focus on the back of an acquisition. They will be acquiring 70.37% shareholding in Navkar Cop for 1013 crores as well. Tell us a little more about that as well. Well, JSW Infra will be acquiring around 70 odd person from Navkar Cops promoters and this acquisition has been done at a price of around 9695.61 rupees that is from the promoters and this had a discount of nearly 15 odd percent compared to the current market price. Now given the fact that they are acquiring a majority stake in this company, they will also have to make an open offer as per semi regulations. They're making an open offer to acquire additional 26% from the public shareholders and for that they have kept a price higher at around 105.32 rupees which is 10% premium compared to what they are paying to the promoter. But compared to the current market price, again it is at a discount of nearly 6 odd percent. So the cost of acquisition for JSW Infra could be anywhere between 1013 hundred crore rupees to 1425 crore rupees depending on how the open offer goes going forward. Now this deal has been done at an enterprise value of around 1680 crore rupees which marks the EV2 EBITDA close to 27 times which is below the valuation that what JSW Inter is currently trading. Also, if you look at the price to book valuation based on FY24 or numbers, it is just at 0.75 Times Now. Container cargo is just two to 3% of JSW in France FY24 financial. So this business or this acquisition is kind of a foray into a new business for the company. Apart from that, they are expecting this acquisition to get completed by the third quarter of FY25. And what JSW Infra gets with this acquisition is they get the key facilities of Navkar Cow which is the one CFS planned and then there is the Gati Shakti Cargo Terminal 2 safest plants in Panvel 1 ICD at Morbi. And also do remember that Navkar has a container train operator license. So this is what? JSW Infra gets from this acquisition. Alright, Swami, thanks so much for taking us through that. So JSW Infra and Navkar Cop, two stocks that should be closely watched out for today's trading session. But if you like this video, then like share and subscribe to ET Now.